Governance and Development - PowerPoint PPT Presentation

Governance and Development. Presented to: Public Sector and Anticorruption Core Course April 23-26, 2007 Washington D.C. Presented by: Ed Campos Governance Adviser for Bangladesh SASPR. The World Bank has come a long way in a brief period of time. State in a Changing World (97).

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Governance and Development

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For Bangladesh, a reduction of corruption from its observed level (measured by ICRG corruption index) to a level of, say, Poland would increase the annual average growth rate during 1990-97 by 2.14 percentage points (raising average per capita growth rate to 5.5 percent). The latter growth rates, if extrapolated to 1990-2004, would yield a per capita income about 1/3 above the current level.

Using measures of rule of law, bureaucratic quality and corruption, Chong and Calderon (2000) found significant causality from good governance to growth and vice versa – i.e. “good governance” both contributes to and results from strong economic performance

Other studies have dealt with the potential for reverse causation by using exogenous instruments for the governance indicators and concluded that good governance has a significant and strong causal impact on economic performance …

Burkhart and Lewis-Beck (1994) found that while higher per capita incomes foster democracy, democracy in turn does not foster higher incomes

Based on 1998 World Bank surveys of public officials in these countries: 218 public officials in Latvia (with Latvia Facts); 350 public officials in Georgia (with GORBI); and 97 public officials in Albania (with ACER).

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Ministers

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0

20

40

60

80

Percent of public officials believed to have purchased their positions